Monday, May 30, 2016

Imperial Metals Corporation - III.t

The company owns and operates the Mount Polley open pit copper/gold mine, has 50% interest in both the Huckleberry open pit copper mine, and the Ruddock Creek zinc/lead project. The sole active project outside of British Columbia is the Sterling heap leach gold mine in Nevada.

On May 12, 2016 the company released News
"Imperial Metals Corporation (the “Company”) (III-TSX) reports financial results for the three months ended March 31, 2016 as summarized below and discussed in detail in the Management’s Discussion & Analysis (“MD&A”). The Company’s financial results are prepared in accordance with International Financial Reporting Standards (“IFRS”). The reporting currency for the Company is the Canadian (“CDN”) Dollar.SELECT QUARTERLY FINANCIAL INFORMATION

Three Months Ended March 31

expressed in thousands, except share and per share amounts

2016

2015

Total revenues

$136,785

$1,533

Net income (loss)

$17,729

$(33,384)

Net income (loss) per share

$0.22

$(0.45)

Diluted income (loss) per share

$0.22

$(0.45)

Working capital deficiency (1)

$173,918

$35,569

Total assets

$1,450,277

$1,394,389

Total long term debt (including current portion)

$863,712

$818,815

Cash dividends declared per common share

$0.00

$0.00

(1)Defined as current assets less current liabilities. The March 31, 2016 amount includes $164,423 related to the senior credit facility that the Company extended on May 11, 2016.

Revenues were $136.8 million in the March 2016 quarter compared to $1.5 million in the March 2015 quarter. The increase of $135.3 million was due to revenue from the Red Chris and Mount Polley mines in the March 2016 quarter compared to the March 2015 quarter when both mines were not in commercial operations. There were five concentrate shipments in the March 2016 quarter from the Red Chris mine and two concentrate shipments from the Mount Polley mine.

"The tailings dam breach that caused a water and tailings discharge at Imperial Metals Corp.'s Mount Polley mine early Monday morning has stabilized. The company's first priority is the health and safety of its employees and neighbours, and it is relieved no loss of life or injury have been reported. The company is deeply concerned, and is working to mitigate immediate effects and understand the cause. Exact quantities of water and tailings discharged have yet to be determined. The tailings are alkaline with an average pH of 8.5 and are not acid generating.

The cause of the breach is unknown at this time. The dam is an independently engineered structure that operated within design limits and specifications. Monitoring instruments and on-site personnel had no indication of an impending breach. The Mount Polley mine has been placed on care and maintenance, and business interruption and physical damage insurers have been notified. While the damaged area is relatively small compared with the overall size of the dam, it is not known at this time how long it will take to restore operations.

We are working closely with provincial ministries, local agencies and emergency response officials. Further updates will be provided as more information becomes available."